Nintendo Co NTDOY is reportedly making moves to fortify its mobile gaming ecosystem outside of consoles and will establish a new company soon.
What Happened: Nintendo on Monday announced a joint venture with Japanese mobile gaming giant DeNa to "strengthen its business's digitization" and establish a new company called Nintendo Systems Co., Ltd, according to The Verge.
See Also: How To Buy Nintendo (OTC: NTDOY) Stock
It has co-developed multiple Nintendo games for Apple Inc. AAPL iOS and Alphabet Inc.'s GOOG GOOGL Android, including "Super Mario Run," "Mario Kart Tour," "Fire Emblem Heroes" and "Animal Crossing: Pocket Camp."
Why It's Important: Nintendo is a strong third leg in the duopoly established by Microsoft Corporation MSFT and Sony Group Corp SONY in gaming. It now wants to strengthen its reach outside consoles with a more substantial mobile push considering its Switch supply has been constrained due to chip shortages, reported Apple Insider.
Nintendo didn't explicitly reference mobile gaming plans, although its DeNA tie-up has boosted expectations. The two companies last launched a mobile game in 2019.
"Super Mario Run" and Niantic's "Pokemon Go" have been a roaring success.
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